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Regulators help Texas craft brewers, so guess who wins? Consumers

September 7, 2016Chris Crowell

Texas Senate passes craft beer legislation

Last week we celebrated with Texas craft brewers after Judge Karin Crump came down in their favor against SB 639. This bill required craft brewers to use distributors after they exceeded 125,000 bbls a year, while also totally ceding those distribution rights to the distributor. This is the main reason SB 639 needed to go, but there was another lesser known provision that said craft breweries had to sell their beer in any part of the state for the same prices. This obviously led brewers to choose the highest pricepoint for that single price.

All of this means savings will be passed on to the Texas beer drinker, which improves the competitive position of local beer within the market.

From Dallas Business Journal:

“When you increase the distribution costs, who’s paying? The local customer,” said Craig Weichmann, founder of Fort Worth-based Weichmann & Associates, an investment banking consultancy specializing in restaurants.] “It begins to push the price out of what consumers would be willing to pay. It restricts trade because it imposes an additional cost factor.”

Just another reminder that, usually, when craft beer wins, everybody wins.

Cropped shot of male hand holding beer bottle & national flag of USA against setting sun. River background. Happy independence day
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  1. Jared Read says

    September 7, 2016 at 5:36 pm

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